Hi disneymama88,
Thanks for letting us know about this. The behavior you have described is actually due to a known deficiency in the way eBay handles third party checkout systems. The information that is reflected on the "Checkout Complete" notification from Auctiva is the correct information.
When an item is paid for through a third party checkout system such as that offered by Auctiva, Paypal will display the first shipping service offered on the listing in their payment notification instead of the actual shipping service selected by the buyer.
We brought this to their attention a while back but we have not received any indication that they are working on resolving the problem. Given that eBay is planning to do away with third party checkout systems next year, it seems unlikely they are going to do any additional work to better support them.
If you have any additional questions or concerns, please feel free to contact our customer support team using the web form on the following page: http://www.auctiva.com/help/requesthelp.aspx
-Mike